History 1807 Lecture 2: Lecture 1
27 Sep 2016
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Austerity governments must be careful about what they spend/must cut spending (social programs, regulation etc. ) Capitalists bet/speculated so much that the entire system was about to collapse. Government was like the parents taking the key to the candy shop from the kids. Government pulled back stimulus spending, pulled back aid, social programs, spending etc. Europe is still in turmoil, us economy is growing but unemployment still high, wages stagnant. Capitalism only grew as a result of the state, hence ^ is perverse (capitalism/the state are one and the same) Business has prospered most when government is strong in the past, when given more freedom has failed. Governments emerged at same time as desire for private accumulation of wealth, they provided the necessary materials for the growth of capitalism. E. g. banks were created, originally centralized, regulated. Capitalists recognized the need for government b/c they needed stability.
